Indian IT firms reduce H-1B reliance as US tech giants emerge as top users

At a time when H-1B visa faces growing criticism in the US for allegedly taking away American jobs, data from the National Foundation for American Policy (NFAP) shows that Indian information technology (IT) services companies have significantly reduced their dependence on the programme over the past eight years. This is in contrast to US tech giants, which have emerged as the biggest users of the visa type in the said time frame.

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Indian IT majors downsize H-1B use

According to NFAP data, approved H-1B petitions for initial employment from the top seven Indian IT firms dropped 56 per cent to 6,700 in FY2023, down from around 15,100 in FY2015.

One major Indian IT services company, once the largest H-1B sponsor among its peers, recorded a 75 per cent drop in approvals during this period.

On the contrary, the top five American firms together secured nearly 28,000 H-1B approvals in FY2024. In FY2025, a leading US e-commerce company once again topped the list, with about 10,000 approvals.

More Americans hired

Indian IT firms now employ over 50 per cent local staff in their US operations, further reducing reliance on visas. This push towards local hiring, along with investments in AI, upskilling, and adapting to shifting policy regimes, has helped Indian service providers to balance regulatory risk with operational flexibility.

The COVID pandemic further accelerated the offshore shift, but analysts note that the trend is not sudden but part of a long transition in delivery models.

In January, industry majors such as Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra reported that their H-1B dependency for deploying staff in North America had significantly declined.

While the current scenario and political rhetoric may have some short-term impact, larger Indian IT companies remain relatively insulated.

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Global tech giants expand in India

Meanwhile, US-based technology product firms have become the highest users of the visa programme. Unlike outsourcing companies, they use the visa to employ it to fill high-paying, specialised positions such as engineers, AI experts, and data scientists.

At the same time, American technology giants, including Google, Apple, Meta, Microsoft, and OpenAI, are expanding their footprint in India.

From new engineering hubs to AI partnerships and large office leases in Hyderabad and Bengaluru, India remains central to their global growth strategies. Collectively, firms like Meta, Amazon, Apple, Microsoft, Netflix, and Google (Alphabet) have hired over 30,000 employees in India over the past year.

For Indian IT companies, however, rising anti-immigration sentiment in the US means that only highly skilled, high-paying professionals may gain access to specialised visas going forward.

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US Hire bill adds to woes

The recent Halting International Relocation of Employment (HIRE) Bill has added new uncertainty for India’s IT sector.

The bill seeks to impose a 25 per cent tax on certain payments to foreign firms for services consumed in the US. Though experts believe it is unlikely to pass in its current form, the rhetoric still adds uncertainty to India’s $280 billion outsourcing industry.

Addressing these concerns in an interview with Moneycontrol, Ashwini Vaishnaw, Minister of Information Broadcasting, Electronics and IT, reassured Indian IT professionals worried about job losses due to US tariff threats.

He said India is actively engaging with global corporations and foreign governments to ensure the country’s technology industry continues to grow, despite fears of a potential outsourcing crackdown under Trump.